According to the bid-rent model, which of the following individuals would be the one least likely to live closest to the central business district (CBD)? (Hint: Assume that work locations are located adjacent to each other at the center of the CBD)
A) A barista at the local coffee shop who uses a car to commute.
B) A doctor at the city hospital who uses a car to commute.
C) A barista at the local coffee shop who must walk to work.
D) A doctor at the city hospital who must walk to work.

Question

Quizplus · Accepted Answer

According to the bid-rent model, those who are able and willing to pay higher rent/mortgage are more likely to live closer to the CBD. In this scenario, a doctor is more likely to have a higher income compared to a barista and therefore more likely to afford to live closer to the CBD, regardless of their mode of transportation. The fact that the barista in option A uses a car to commute further supports this idea as it implies that they are commuting from further out, where housing is cheaper. Therefore, a barista who uses a car to commute is the least likely to live closest to the CBD.

According to the Bid-Rent Model, Which of the Following Individuals